ARELLANO UNIVERSITY

SCHOOL OF LAW
Taft Avenue corner Menlo Street, Pasay City
SY 2019-2020 1st Semester
MIDTERM EXAMINATION

LABOR LAW REVIEW

Dean Porfirio DG. Panganiban, Jr. Nov. 8 2019
FRIDAY 2 Set Class 6:00 to 8:30 PM

INSTRUCTIONAL NOTES. This Examination will have an un-extendable period of

TWO HOURS. Read each and every question very carefully. This exam consists of FIVE
(5) pages with THIRTY ONE (31) not so difficult questions respectively. OBSERVE
HONESTY!!! Remember to sign the attendance sheet, write your permit numbers
on the left top portion of the questionnaire and attach the same to your test
booklet.

A full 10 credit points will be deducted to the raw score for not
following instructions.

HONESTY is the true measure of a PERSON.

CHEATERS DO NOT PASS THE BAR and
ARE DAMNED TO FAIL FOR LIFE!!!

1. ALEX worked as a room boy in the LEX Hotel. He sued for underpayment of
wages before the NLRC, alleging that he was paid below the minimum wage.
The employer, LEX Hotel, denied any underpayment, arguing that based on
long standing, unwritten policy, LEX Hotel provided food and lodging to its
housekeeping employees, the costs of which were partly shouldered by it and
the balance was charged to the employees. The employees’ corresponding
share in the costs was thus deducted from their wages. The employer
concluded that such valid deduction naturally resulted in the payment of
wages below the prescribed minimum. If you were the Labor Arbiter, how
would you rule? Explain with legal basis. (3%)
2. What is meant by the principle “A FAIR DAY’S WAGE FOR A FAIR DAY’S
LABOR”. What is its relevance in labor law? Any exception to this principle,
provide and discuss all. (3%)
3. What is SOCIAL JUSTICE? Explain its application and relevance to Labor?
(3%)
4. Explain what is meant by contractual prerogative vis a vis management
prerogative? What are its requirements and limitations? (2%)
5. Provide at least FIVE (5) Constitutional Provisions on Related to Labor. (5%)
6. State and explain exhaustively the constitutional rights of LABOR? (3%)
7. How does the Law on Wages provide the protection necessary to ensure that
the employees shall be paid and receive the wages they are entitled to? (2%)
8. How is wage defined? Is it the same with Salary? Distinguish Facilities from
Supplements. Give proper illustrations for each. (3%)
9. BONGLO, a widower, lived alone in a house with a large exquisite and lovely
garden. One day, he noticed that the plants and the bushes in his garden
 needed trimming. He remembered that RODEL, a 17 yr. old out-of-school
youth, had contacted him in church the other day looking for work. He
contacted RODEL who immediately attended to the trimming BONGLO’s
garden and finished the job in three days.
a. Is there an employee-employer relationship between BONGLO and
RODEL? Explain with legal basis.(2%)
b. Does BONGLO need to register RODEL with the Social Security System
(SSS)? Explain with legal basis.(2%)
10. Exhaustively state and illustrate all the tests in determining Employer-
Employee relationship. Explain with legal basis how, if ever, the tests apply to
the following situations: (5%)
A. Bus Company and the Bus Driver.
B. Resident Physician and the Hospital.
C. Operators and the Jeepney Drivers.
D. Operators and Taxi Drivers.
E. Transport Network Vehicle Services (TNVS) provider and Car
Owner Driver.
F. BEVERAGE and SODA Company and Sales personnel selling the
BEVERAGE and SODA.
11. Explain thoroughly the concept of “compressed work week”. Is this a valid
undertaking? Under what conditions a “compressed work week” schedule may
be legally authorized as an exception to the “eight-hour a day” requirement
under the Labor Code? (3%)
12. In your study of Labor Standards and Social Legislation how many times may
a male employee go on Paternity Leave? Can he avail himself of this benefit,
for example, 50 days after the first delivery by his wife? Explain the
requirements the law in order to avail of its benefits (3%)
13. CAROLINE GAN DUHLAY, a promising employee of STAR KA TALAGA
Company had an appointment with her Dermatologist, Dr. Roberto Faustino.
CAROLINE GAN DUHLAY had to leave work early for the medical
appointment. Thus, she was undertime for that day for three hours. The next
day, unfortunately, she was required to stay for three hours more after work
in order to prepare a presentation. On payday, CAROLINE GAN DUHLAY
saw on her pay slip that her pay was not deducted for his undertime.
However, she also found out that he was not paid overtime for the extra three
hours he worked for the preparation of the presentation. As she was at
dilemma and in quandary about these circumstances, she sought your advice
on the following matters. Consider that the daily rate of CAROLINE GAN
DUHLAY is Eight hundred Pesos.
 A. Was the HR department of STAR KA TALAGA Company correct in
offsetting CAROLINE GAN DUHLAY’s undertime from her
supposed overtime pay? Explain thoroughly with legal justification.
Can the HR department of STAR KA TALAGA Company reason out
that what they did was well within their management prerogative?
(2%)
B. Supposing that the following day which CAROLINE GAN
DUHLAY le Balba was required to work by her employer was her
designated rest day. Can the employer make her work on that day?
Is this an absolute rule are there any instances when an employer
CAN validly require his employees to work on any day even on a
rest day? (2%)
C. Supposing CAROLINE GAN DUHLAY was allowed to work on
her designated rest day. How much would CAROLINE GAN
DUHLAY be entitled to if she is made to work on her rest day?
Supposing she was required to work additional three (3) hours how
much would she be entitled to? (2%)
D. Supposing CAROLINE GAN DUHLAY, JAL DEE, BARBIE DY,
ROSE CARLOS, ANTHONY PAR, JAH VILLAMONTE, JOJO
ARROYO and BASHRI JAYR representing more than majority of
the employees of STAR KA TALAGA Company, considering the
“economic meltdown” being experienced globally, entered into an
agreement with STAR KA TALAGA Company reducing the
percentage of night differential pay, overtime pay, and premium
pay being received by the employees. Is this a valid or can this be
done? Supposing the agreement was to increase the percentage
would your be the same? (2%)
14. The projected bonus for the employees of AQUA CLARE Company was 50% of
their monthly compensation. Unfortunately, due to the economic meltdown,
to keep the company afloat, the president reduced the bonus to 5% of their
compensation. Can the AQUA CLARE Company unilaterally reduce the
amount of bonus? Explain briefly.(3%)
15. Who are covered by the provisions of the labor standards law as provided by
Title I, Book III of the Labor Code as amended?(2%)
16. Are there any exceptions to the coverage provided in the previous question? If
there are, state and provide all of them, specifically elucidating the reason/s
and legal basis why they are not covered.(%)
17. State the three kinds of powers that may be exercised by the Secretary of
Labor or his duly authorized representatives in connection with the
administration and enforcement of labor standards provisions of the Labor
Code and of any Labor Law, Wage Order or Rules and Regulations pursuant
thereto? Briefly but substantially discuss the concept of these powers. (3%)
18. Discuss briefly the concept of Maternity Leave. Briefly discuss Parental leave.
(3%)
19. State the original and exclusive jurisdiction of Labor Arbiters. (3%)
20.ROSELA has an “ukay ukay” store with 3 employees. ROSELA asked MIKKA
one day to pick up some goods in a nearby supply store where MIKKA met
KRISTIAN NICOLE, a scheming lawyer who because he was attracted to
MIKKA and wanted to be close to her convinced her to file a labor case against
ROSELA for non-payment of Holiday Pay. The case was filed with the NLRC.
Would the case prosper? Provide your answer with legal basis. (2%)
21. The RAMIREZ Hospital is a semi- government hospital partly subsidized by
the City Government of Paranaque. It holds 41 employees. Aside from their
salary and allowances, are given food, but the amount spent thereof is
deducted from the salaries of their employees. Ten of the Hospital Employees
filed a complaint before the NLRC for underpayment of wages. The Regional
Director ordered the Labor Standards and Welfare Officer (LSWO) to inspect
and conduct the necessary investigation where it was found that there is
 indeed underpayment of wages, for all encompassing Forty One (41)
Employees with a total sum of Seven Hundred Thousand Pesos (Php
700,000). With this, the Regional Director ordered the payment of the said
wages. Finding the decision unacceptable, RAMIREZ Hospital filed a motion
for reconsideration to the Secretary of DOLE where the order of the Regional
Director was modified to Six Hundred Eighty Thousand Pesos (Php
680,000.00) for all the Forty One (41) Employees, without preference as to
whether the employee is still employed to RAMIREZ Hospital or not. Is the
ruling of the Secretary of DOLE proper? (3%)
22. Define exhaustively the following terms: (5%)
A. Labor Legislation
B. Labor Standards
C. Labor Relations
D. Social Legislation
E. Employee
F. Employer
G. Bonus
H. Overtime Pay
I. Premium Pay
J. Night Shift Differential Pay
23. Buknoy is a lawyer who is a well-known womanizer. He has been working in
AIF for 15 years and has availed of the paternity leave for three (3) times. On
the fourth time, the company employed a new HR head, Ging. Ging happens
to know Buknoy’s wife, Lyn. Ging knew that Lyn was pregnant, but before she
grants the leave, she was surprised to see that Buknoy has filed for paternity
leave three (3) times, when his wife Lyn has only one (1) daughter. Upon
study of the records, Ging found that Buknoy has another wife, Kim who gave
birth twice. Buknoy argued that he was Muslim, and that both Lyn and Kim
was his wife. Should Ging grant the paternity leave? (2%)
24. Provide the instances recognized under the Labor Code of acts of the
employer that is considered discriminatory against women employees.(2%)
25. Provide all the Regular Holidays recognized under labor laws. Explain what
happens in cases of Double Regular Holiday falling on the same day. What
happens if the employee is required to suffer on said day? Provide case law
basis for your answer.(4%)
26. State the instances when an employer may require an employee to render
overtime work and when an employer may require employee to suffer during
his rest day.(3%)
27. SANCHEZ REALTY engaged the services of CRUZ CONSTRUCTION to
construct an 8th Floor building in Makati. In the agreement between
SANCHEZ ESPINO REALTY and CRUZ CONSTRUCTION, SANCHEZ
REALTY shall provide the necessary structural plans and CRUZ
CONSTRUCTION shall be in charge of the overall construction of the
building. ALEXIS, a construction worker, fell down from the second floor of
the unfinished building. ALEXIS unfortunately, sustained injuries which
resulted to his temporary absence from work for a period of 3 months.
ALEXIS filed a complaint before the NLRC against both between SANCHEZ
REALTY and CRUZ CONSTRUCTION.
a. Will the action prosper? Explain with legal basis. (3%)
b. Will your answer be the same If ESPINO CONSTRUCTION is a
business not having substantial capital, and the employees are under
the direct control and supervision of SANCHEZ REALTY? (2%)
c. Discuss exhaustively the concept and kinds of contracting or sub-
contracting recognized in the Philippines. (3%)

28.Explain the following concepts and how they apply to Labor, (2.5%)
A. No work No Pay Principle
 B. Fair Days Wage For a Far Day’s Labor
C. Last In, first Out Principle (LIFO RULE)
D. One Union One Company Policy
E. Equal Pay for Equal Work Principle
29. What is the concept of ‘control’ test in an Employer-Employee relationship?
Provide all the conventional and non-conventional tests in determining
Employer-Employee Relationship. (2%)
30.Explain exhaustively the ONE COUNTRY APPROACH SYSTEM.(2%)
31. Elucidate on the Theory of Imputed Knowledge in overseas recruitment.(2%)

ENJOY

LCC - 95' “Soli Fortis Survivit”

LAUDA DEUM
Ut In Omnibus Glorificatur Deus.

Good luck and God Bless!!!